CNN-IBN reports that airlines will pay all outstanding dues on aviation fuel to oil companies in six monthly installments and will be given a credit limit of 90 days to purchase the current requirement of aviation turbine fuel (ATF), it was decided in the national capital on Wednesday. The decision was taken at a meeting of heads of various airlines …

With the theme – “You’ve earned it”, Star Alliance launched its new multi-platform brand campaign on Monday, October 20th, 2008. The campaign is aimed at increasing awareness and familiarity of the Alliance customer benefits, with a special emphasis on the value of global recognition for the frequent International traveller. “Working away from home on international business trips can take its …

Kingfisher Airlines Chairman, Dr. Vijay Mallya, in an interview with Ashwini Phadnis of the Hindu Business Line claims it is “Taxes, not over-capacity, that is killing the Indian civil aviation sector”. The business logic to Dr. Mallya’s statement is to reduce fares by reducing the ridiculous taxation structure on Aviation Turbine Fuel (ATF), which ensures ATF in India is almost …

The bad news just does not stop for the domestic Indian civil aviation industry. Recently released figures show an alarming drop to only 8.6 million domestic passengers for the third quarter of (July-September) 2008, with a miserable 2.68 million passengers for September 2008. This represents a 17% reduction over the same period last year, a 19% reduction from the previous …

The consolidation in the Indian aviation industry has commenced. Jet Airways announced, today, it has entered into a codeshare arrangement with JetLite, its wholly-owned, all economy subsidiary as part of its ongoing efforts to offer passengers synergetic benefits when they choose to fly with the Jet group. As part of the agreement, Jet Airways will place its marketing code (9W) …

The tumultuous last week in the Indian aviation scenario, which rivalled the best soap opera dramas of Bollywood, Tollywood or Sandalwood, shows no signs of abating. The popular joke of the day is “Who says there is a CREDIT crunch in India? See all the politicians taking CREDIT” [for ‘protecting’ the jobs of the Jet Airways staff]. The fight between …

Madhumathi D.S. of the Hindu Business Line reports that the 5 month young Bengaluru International Airport, which was expected to have a dream take-off on the back of phenomenal traffic growth during 2005-08, now seems to be going slow on its expansion plan in the face of a traffic decline. “There has been a dramatic fall in monthly traffic for …

SpiceJet today announced the appointment of Sanjay Aggarwal, as Chief Executive Officer (CEO) with immediate effect. Aggarwal takes over the position from Siddhanth Sharma. Prior to his current responsibilities in SpiceJet Aggarwal held the position of Chief Operating Officer and Chief Strategy Officer for Flight Options. Previously Aggarwal had worked as senior director of Marriott International and had also been …

K.V. Subramanya and Anil Kumar Sastry at the Hindu report that the domestic passenger traffic at Bengaluru International Airport is down. Short-haul domestic air traffic has dropped drastically, and shifted away from the air to surface transport like buses, trains and cars. BIAL is suffering the double blow of a slowdown in the domestic aviation industry which has forced increases …

According to the Press Trust of India, German flag carrier Lufthansa, today said, it will act as a mentor to Indian state carrier Air India to become a member of Star Alliance, a global grouping of top airlines. “Lufthansa is the mentor for Air India and we will work together to get the latter on board the Star Alliance,” the …

Press Trust of India reports that fair trade practices body Monopolies and Restrictive Trade Practices Commission (MRTPC), today, ordered a probe into the operational alliance formed between two leading private carriers, Jet Airways and Kingfisher Airlines. According to highly placed sources, taking a suo moto cognisance based on media reports, the MRTPC ordered its investigative arm, Director General of Investigation …

According to a Press Trust of India (PTI) report, the downturn in the aviation sector yesterday brought the differences among UPA ministers into full play on issues like the bailout for the beleaguered industry. The Labour Ministry convened a tripartite meeting to discuss the sacking of 1,900 Jet Airways employees. “We will seek details of employment and inspect the work …

In a major move to reducing emissions and traffic, while increasing reliability and purity, Indian Oil, commissioned its 36 km long pipeline from its bulk storage terminal at Devanagonthi to Bengaluru International Airport at Devanahalli, where its joint venture with Skytanking GmbH of Germany, IndianOil Skytanking Ltd. (IOSL), is the primary Aviation Turbine Fuel (ATF) vendor. The underground pipeline costing …

SpiceJet announced a drop in its fares on advance purchases of tickets. Apart from a reduction in basic fare for flights booked 10 to 15 days in advance, SpiceJet will also remove the congestion surcharge of Rs 150. The airline is trying to help passengers who plan their holidays and business trips in advance. Announcing the cut, Samyukth Sridharan, Chief …

In a complete U turn, Jet Airways Chairman, Mr. Naresh Goyal held a sentimental and emotional press conference and announced a reinstatement of all sacked employees. In less than 24 hours claiming all staff are family, Mr. Goyal stressed it was an economic decision to lay off, but an emotional one to reinstate. Keeping in view, the criticism by all …

The blood letting in the Indian aviation industry shows no signs of stopping. After the much publicised sacking of 850 cabin crew early on October 15, Jet Airways announced the retrenchment of another 1,050 staff, which also includes flight crews. News reports indicate that another 1,000 jobs will be cut by the end of this year. That will bring down …

Dr. Vijay Mallya and Mr. Naresh Goyal have just announced an alliance between Kingfisher Airlines and Jet Airways. They announced only rough contours using very broad strokes. Details are awaited. At this point, no equity investment will be made. The alliance will include synergies in routes, sharing ground handling and infrastructure, cross-selling of seats, code shares, crews, and frequent flier …

The expansion of Kingfisher Airlines’ much publicised and recent launch international operations, appears to be heading for a cutback even before it has really taken off. AviationWeek’s Neelam Mathews reports “Kingfisher Airlines is likely to stop its international operations following the deepening financial crisis that has hit the Indian airline industry”. She also reports that “Expat pilots and crew at …

The deepening economic crises are forcing the hands of the private airlines in India. Manisha Singhal of the Business Standard reports that airlines have sought a bailout of almost $1 billion (Rs. 4,700 Crore) amidst losses expected to reach $2 billion this year. Take a cue from the recent $440 million (Rs. 2,000 Crore) bailout of NACIL, the national airline, …

The Karnataka state government is tripping over itself trying to expedite the High Speed Rail Link (HSRL) to the new Bengaluru International Airport (BIA), conservatively expected to cost Rs. 5,200 – Rs. 5,700 Crore by completion date, somewhere by 2012. The HSRL project has been put on the fast track, and the Karnataka State Industrial Investment and Development Corporation Limited …